VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 8, 2013) - Copper North Mining Corp. ("Copper North" or the "Company") (TSX VENTURE:COL) is pleased to announce the signing of a loan agreement (the "Agreement" or the "Loan") with an insider of the Company (the "Lender") to secure funds of C$300,000. Proceeds from the Loan will be used for general working capital.
The Loan will mature on November 7, 2013 and carry interest at a rate of eight percent (8%) per annum. In consideration of the risk taken by the Lender, a bonus of shares will be granted equal to 20% of the principal amount of the Loan. Copper North has the option to repay all or any part of the principal of the Loan, together with accrued and unpaid interest, prior to the maturity date without notice or penalty. If the Company is unable to repay the Loan in cash, it has the option to settle the obligation in common shares of the Company. The Loan is unsecured.
Copper North also announces that certain officers have entered in to agreements with the Company to defer payment of salary from April 1, 2013 to September 30, 2013. The deferred salaries will accrue interest at a rate of eight percent (8%) per annum, calculated and payable on September 30, 2013. The Company will also pay a one-time bonus equal to 20% of the deferred salaries on September 30, 2013. The Company may pay the deferred salaries, accrued interest and bonuses in cash or common shares in Copper North.
Any shares issued under the terms of the agreements described above are subject to approval of the TSX Venture Exchange and pricing and resale restrictions as set out under applicable securities laws and policies of the TSX Venture Exchange.
On behalf of the Board of Directors:
Dr. Sally Eyre, President, CEO and Director
About Copper North
Copper North is a Canadian mineral exploration and development company. Copper North's assets include the Carmacks Copper Project located in the Yukon, and the high-grade, stratiform-copper Redstone Property, located in the Northwest Territories. Copper North trades on the TSX Venture Exchange under the symbol COL.
This news release includes certain forward-looking information or forward-looking statements (collectively, "Forward-Looking Information") for the purposes of applicable securities laws. Forward-Looking Information includes, but is not limited to, statements with respect to the Loan and deferred salaries and the repayment thereof. In certain cases, Forward-Looking Information can be identified by the use of words and phrases such as "will", "plans" or "expects". These statements address future events and conditions and, as such, involve known and unknown risk, uncertainties and other factors, which may cause the actual results to differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, regulatory approvals and availability of capital. In making the forward-looking statements, the Company has applied several material assumptions, including, but not limited to, the assumptions that the Company will obtain regulatory approval. Although the Company has attempted to identify important factors that could affect the Company and may cause actual events to differ materially from those described herein, there may be other factors that cause events not to be as anticipated or intended. There can be no assurance that Forward-Looking Information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on Forward-Looking Information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.